Drake Pacific Enterprises Ltd.
TSX VENTURE : DPE

Drake Pacific Enterprises Ltd.

June 23, 2008 09:30 ET

Drake Pacific Nearly Doubles Reserves Again

CALGARY, ALBERTA--(Marketwire - June 23, 2008) -

Reserves Increase:

Drake Pacific Enterprises Ltd. ("DPE" or "the Company") (TSX VENTURE:DPE) announces a new reserve evaluation, prepared by Sproule Associates, of its Swan Hills property. The well came on production in Q2 2008. At June 1, 2008, proved plus probable reserves for the property were evaluated at $5.74 million (NPV 10%). The company nearly doubled its total proved plus probable reserve value, increasing from $6.19 million to $11.93 million (NPV 10%), an increase of 92%. Total proved plus probable reserves increased from 311,000 boe to 465,000 boe.

The changes in reserves increase the Company's Net Asset Value to $0.89 / Share. These calculations include the above reserve value and assume a land value of $485,000, a working capital deficiency of $1,450,000, bank debt of $1,505,000 and common shares outstanding of 10.6 million.

These reserve values do not include the Sousa property which will be assessed at a later date. The reserves also do not include any value from the pending acquisition of a private company (announced June 16, 2008). Total reserves for the Company after closing will be $15.2 million proved plus probable reserves (NPV 10%), up from $4.6 million at this time last year.

Operational Update: Retlaw

In addition to the ongoing program at Sousa, the Company began drilling a new well at Retlaw on June 19, 2008. The results will be announced as they come available.

The Company continues to be on track to meet its second quarter production target of 250 Boe/d.

"The reserve evaluation of our Swan Hills well continues to demonstrate the increasing value of the Company as a result of our effective growth strategy." said Drake president, Mr. Roger Penner.

Drake Pacific Enterprises Ltd. is active in oil and gas exploration and development throughout Alberta. Headquartered in Calgary, Alberta, Canada, the Company is publicly traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V.

This news release contains forward-looking information, Implicit in this information are assumptions regarding commodity pricing, production , royalties and expenses that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made the Company that the actual results achieved will be the same as those forecasted herein. NAV, NPV and other estimates disclosed do not represent fair market value. Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Drake Pacific Enterprises Ltd.
    Neil Orr
    V.P. Operations and Business Development
    Email: norr@drakepacific.com